On Wednesday April 28, President Biden addressed a joint session of Congress for the first time. His speech focused on his vision for a post-pandemic economy as his administration shifts to thinking beyond the pandemic response. The president’s primary takeaways include:
- Encouraging support for his nearly $4 trillion pair of proposals, the American Jobs Plan and the American Families Plan.
- Urging passage of the George Floyd Justice in Policing Act by next month.
- Calling for an increase in the federal minimum wage to $15.
- Asking Congress to pass legislation related to gun control and immigration.
President Biden spent most of his remarks on the recently proposed American Jobs Plan and American Families Plan. In March, President Biden introduced the American Jobs Plan, which proposes $2.3 trillion in funding for buildings and utilities, transportation, jobs and innovation, and in-home care. Analysts at The Council of State Governments (CSG) earlier reviewed the primary components of the American Jobs Plan (click here to learn more).
On Wednesday, April 29, the White House released the proposed American Families Plan which includes $1 trillion in funding allocations and $800 million in tax credits. Childcare provisions include a national paid family and medical leave program, childcare subsidies and extensions of several federal tax credit expansions introduced as part of the most recent COVID-19 relief. The proposal also includes education provisions for universal pre-kindergarten, two years of free community college, an increase in the maximum Pell Grant award and investments in colleges and universities serving minority groups.
President Biden proposes paying for the American Families Plan through tax increases for Americans who earn more than $400,000 a year, including raising capital gains taxes on high-income investors.
An analysis of the outlines of the proposed American Families Plan suggests most funds will be paid directly from the federal government to individuals, therefore not requiring State pass through. However, the plan would make $1.6 billion available immediately to states “to provide educators with opportunities to obtain additional certifications in high-demand areas like special education, bilingual education, and certifications that improve teacher performance.” The plan also provides for grants to states, territories and tribes “to provide funding to colleges that adopt innovative, proven solutions for student success, including wraparound services ranging from childcare and mental health services to faculty and peer mentoring; emergency basic needs grants; practices that recruit and retain diverse faculty; transfer agreements between colleges; and evidence-based remediation programs.”
States also will play a role in implementing several of the proposed initiatives. For example, the proposal calls for a national partnership with states to offer free, high-quality, accessible and inclusive preschool to all three-and four-year olds. The proposal also encourages a national partnership with states to offer two years of free community college to all Americans, including DREAMers. The specific role and responsibilities of states in these partnerships are yet to be determined. However, a bill introduced on April 26 by the Democratic chairs of the Senate and House education committees proposes that the federal government would finance 75% of the average community college tuition nationwide, and states would match the remaining 25%. These details will be studied and deliberated by Congress over the next several weeks.
The Council of State Governments will share a more in-depth analysis of the American Families Plan early next week. Follow our COVID-19 State Recovery webpage to receive this analysis and additional information and resources on The American Rescue Plan Act of 2021 and other federal funding going to the states.